The Favorite: Real Quiet won the Kentucky Derby as a minor long shot and in the Preakness Stakes was the second choice. In both races, he defeated an up-and-coming colt with a big closing kick, Victory Gallop. The Spoiler: Victory Gallop, after a pair of runner-up efforts, was poised to turn the tables on his rival.
Both hedge funds and private equity funds appeal to high net worth individuals (many require minimum investments of $250,000 or more), traditionally are structured as limited partnerships and involve paying the managing partners basic management fees plus a percentage of profits.
Obsidian, one of the flagship fixed income hedge funds run by asset management giant BlackRock, was up 25 per cent at the end of August, according to a client of the company. Hedge funds run by BTG Pactual, the Brazilian investment bank, have also surged thanks to bets in US MBS. The BTG Pactual Distressed Mortgage fund was up 28 per cent for the year to August 31.